On July 1, 2005, Shree Ltd purchased a second-hand machinery for Rs 40,000 and spent Rs 6,000 on…

On July 1, 2005, Shree Ltd purchased a second-hand machinery for Rs 40,000 and spent Rs 6,000 on re-conditioning and installing it. On Jan 1, 2006, the firm purchased machinery worth Rs 24,000. On June 30, 2007, (the machinery purchased on Jan 1, 2006) was sold for Rs 16,000. On July 1, 2007, another new machinery was purchased on installment basis, payment for which was to be made as follows:

June 30, 2008

Rs 10,000

July 1, 2008

Rs 12,000

June 30, 2009

Rs 11,000

Payments in 2008 and 2009 include interest of Rs 2,000 and Rs 1,000 respectively.

The company writes off depreciation @ 10% on original cost. The accounts are closed every year on Mar 31. Show the Machinery Account for three years ending Mar 31, 2008.

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